Stock trading limit order coupled link (LOCK)

ABSTRACT

This invention has the potential to generate very good return on investments from stocks that are conservative in movement. This invention will greatly benefit investors that do not have the time to constantly trade stock yet want to take advantage of normal price fluctuations. The Limit Order Coupled LinK (LOCK) invention, for example, will take a buy order, complete the transaction at the specified price, then automatically resubmits a new order to sell at a specified higher price. If specified, the process can automatically cycle through the buy-sell process a set number of time allowing the investor to take advantage of intra-day market moves and normal stock price fluctuations with no personal investor evolvement. The LOCK order, with set profit margins, allows on-line traders and brokers to place one order, which will automatically generate logical, sequenced additional orders returning a profit on each transaction. LOCK will benefit both the investor and the stock trading company.

CROSS REFERENCE TO RELATED APPLICATIONS

Not Applicable

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

Not Applicable

REFERENCE TO A MICROFICHE APPENDIX

Not Applicable

BACKGROUND OF THE INVENTION

This invention applies to buying and selling stocks, options,commodities, bonds, and most forms of equities and securities. Thisinvention has useful application for the individual investor, thesecurities broker and others who trade securities.

One of the strategies for buying and selling stock is to buy stock atone price forming a ‘long’ position then selling the stock at anotherprice, closing out that position. Other strategies include forming a‘short’ position by borrowing stocks then closing out the position bybuying back the securities at another price.

On-line securities trading allow the common investor the ability to buyand sell stocks and securities over the Internet at minimal transactioncosts. Numerous electronic trading companies have been established andtens of thousands of individual traders have made tens of millions ofsecurities transactions every week. Many individual traders continue todedicate hours to buying and selling securities in hopes of benefitingon minor stock price moves. Many must take time out of their regularbusy day to watch the market and trade stock. This extra time requireddetracts from a person's regular job and also leads to less-than-optimalstock trading results.

The current Internet investment approach requires investors to accesstheir accounts to submit a buy order, then re-access their accounts toreceive a list of the daily transactions. If an investor submits a limitorder, the stock price must reach the limit order price before thetransaction takes place; often the order is not filled the same day. Ifthe investor submits a market order, the transaction occurs quickly, butthe investor must wait to find out the cost of the transaction that wasdetermined by the market.

In either case, the investor must submit an order, wait for thetransaction to occur then develop and submit a second order to close outthe position in hopes of making a profit. This current state of the artprocess is time consuming and may require investors to check theiraccounts several times a day. The result is loss of time or interferencewith the investors' regular job, and in a fast-moving market, investorsmay miss the opportunity to close out their position.

To take advantage of market volatility, investors must continuallymonitor the market. First they need to decide when to buy, then, oncethe buy transaction has occurred, they must immediately submit a secondorder, usually a limit order, to take a sell position and close out theposition at a predetermined price.

Of course investors can still use traditional stockbrokers to execute abuy-sell or sell-buy strategy. However using a broker adds to highertransaction cost and the broker must also watch the stock and executetwo sequenced orders.

My invention will replace the current methods and processes, allowinginvestors to lower transaction costs. With my invention, investors canplace one order that will buy the security at a preset price and sellthe security at a gain price, without requiring additional investoractions.

SUMMARY

The Limit Order Coupled Link (LOCK) invention is designed to allow theonline investor or stockbroker to enter one transaction order, whichwill execute an automatic sequenced transaction strategy for buying andselling a security for a predefined profit. This invention offers anumber of advantages. It frees the on-line investor or stockbroker fromthe burden of monitoring a selected securities price movement. Instead,management software module in the electronic trading system will executethe buy-sell strategy. LOCK simplifies the current process in whichinvestors must submit orders, one to establish an open position and asecond to close out a position.

Example

Current method: Two separate orders requiring a time delay to confirm1^(st) order was completed before submitting the 2^(nd) order:

Order Stock Quantity Buy Price # 1 Buy-XYZ 100 56

-   -   Once confirmed that transaction is completed then a new order is        submitted.

# 2 Sell-XYZ 100 57

LOCK method: 1^(st) order contains information for constructing the2^(nd) order. Therefore, execution of the first order automaticallygenerates the second order. Investors only needs to submit one order:

Stock Quantity Buy Price Lock Price XYZ 100 56 1

The above LOCK order translates to “buy 100 shares of XYZ at $56 pershare and once the transaction has occurred (open position), submit asell order for 100 shares of XYZ at $57 per share.” Once the securitiesare sold the position is closed and the investor walks away withapproximately $100.

LOCK offers big advantages, yet is very simple to implement, adding justone more data field. Currently, an electronic transition required atleast five data fields: (1) buy or sell, (2) securities symbol, (3)quantity, (4) market price or limit price, and (5) the time the order isgood for day-order or good-till-cancel. LOCK adds one more data field.This is the LOCK field that automatically locks a transaction in placeat a price the investor determined. An example would be (1) buy (2)stock XYZ, (3) 100 shares, (4) at market price for a share, (5)good-till-cancel, (6) LOCK 1. This would be translated by the computernetwork as a buy order for 100 XYZ at market per share and place theorder to (1) sell (2) stock XYZ, (3) 100 shares, (4) at purchased priceplus $1.00 a share, (5) good-till-cancel. This will allow investors toplace their orders and not have to watch the market to complete theirstrategy. Investors are free to conduct other business and, if the 100shares of XYZ stock they procured goes up $1.00, the sell order will beexecuted and he will profit $100.00 minus the transaction costs.

LOCK actually takes some of the risk out of stock trading providesbetter chances that the investor realizes a profit. Under the currentsystem, investors mentally set a sell price, but then when the stockpasses that price often the investor moves the sell price out as well.Then, when the stock price falls, the investor looses profit opportunityuntil or unless the stock price goes up again. With LOCK, the investorcan set disciplined, predefined gains on securities. The investordecides at what price to buy stock and what price to sell it. LOCKautomatically buys and sells at the investor's predetermined prices. Asa result, the investor need not constantly monitor fluctuating stockprices and is guaranteed a profit should the stock rise to thepredetermined sell price.

Another significant advantage of LOCK is that small and part-timeinvestors can realize a profit from smaller stock gains typicallyproduced from daily market volatility. This provides an alternative to“buy and hold” strategies.

DRAWING FIGURES

FIG. 1 is an example of the basic information required on an inputscreen for trading securities as an on-line investor or a broker intoday's electronic trading environment.

FIG. 2 is an example of the current electronic trading informationrequired with the addition of the LOCK information.

FIG. 3 shows the conversion and translation of the conventional orderwith LOCK information into two sequenced orders, part 1 and part 2.

FIG. 4 shows the conventional electron trading process requiring twoorders to open and close a position.

FIG. 5 shows the LOCK method, process and order flow sequence foropening and closing a position using a LOCK order.

FIG. 6 shows an alternative embodiment of the LOCK method by addingoptions of number of cycles and increments in price changes for eachincrement.

FIG. 7 shows how an alternative embodiment would be integrated into theLOCK method and management module.

FIG. 8 shows an alternative embodiment of locating the LOCK control andmanagement module on the investor's computer.

LIST OF REFERENCE NUMERALS

-   Item 1 is an example a conventional order and information required    to place an electronic equities order.-   Item 2 is the buy/sell selection information.-   Item 3 is the short/long selection information.-   Item 4 is the information on length of time the order is applicable    i.e. for the day or good till canceled (GTC).-   Item 5 is the stock or equity symbol information.-   Item 6 is the quantity of stock or equity information.-   Item 7 is the information on the price the equities should be traded    at, i.e. at the current market price or specify a market price as a    limit order.-   Item 8 is the limit order price information.-   Item 9 is the Limit Order Coupled Link (LOCK) activation    information.-   Item 10 is the amount of price that the stock price must move to    activate the second transaction the LOCK-   Item 11 is the second part of the LOCK transaction buy/sell box    which is automatically entered based on the original LOCK order,    i.e. a buy order, once executed would then become a sell order.-   Item 12 are the steps, items, and process that comprise the LOCK    management module.-   Item 13 states the timeline of the second LOCK transaction, which    would normally be a good to canceled order unless the customer    manually enters another conditions such as a day order.-   Item 14 is a copy of the stock or equity symbol which is the same as    the first transaction.-   Item 15 is a copy of the stock quantity which is the same as the    first transaction.-   Item 16 is the addition (or subtraction) of the LOCK price from the    first transaction executed price and placement of the limit order    second transaction.-   Item 17 is the investor or broker who initiates the electronic    order.-   Item 18 is a conventional buy/sell order generated by the investor.-   Item 19 is the LOCK order generated by the investor.-   Item 20 is the electronic security trading company, organization or    means for the investor to process his order (such as E-Trade,    Ameritrade, etc.).-   Item 21 is the electronic order generation process at the electronic    trading company.-   Item 22 is the electronic order and communication between the    electronic trading company and the securities exchange.-   Item 23 is the securities exchange (such as NASDAQ, NY Stock    Exchange, etc.)-   Item 24 is the trading transaction point of the securities exchange    where securities are offered and traded (either electronic or voice)-   Item 25 is the process of trading the security and filling the    transaction order.-   Item 26 is the electronic trading company completing the transaction    and updating the investor's account, securities and cash position.-   Item 27 is the second order that the investor must generate to close    out his position i.e. if he bought a stock, now he attempts to sell    at a higher price to make a profit.-   Item 28 is the electronic order generation process at the electronic    trading company (same as Item 21).-   Item 29 is the electronic order and communication between the    electronic trading company and the securities exchange (same as Item    22).-   Item 30 is the trading transaction point of the securities exchange    where securities are offered and traded (either electronic or voice)    (same as Item 24).-   Item 31 is the process of trading the security and filling the    transaction order (same as Item 25).-   Item 32 is the electronic trading company completing the transaction    and updating the investor's account, securities and cash position    (same as Item 26).-   Item 33 is the process at the electronic trading company to generate    a record and generate the LOCK order.-   Item 34 is the LOCK order and communication between the electronic    trading company and the securities exchange.-   Item 35 is the process to prepare the second order including the    LOCK increment.-   Item 36 is the trading transaction point of the securities exchange    where securities are offered and traded (either electronic or voice)    (same as Items 24 and 30).-   Item 37 is the process of trading the security and filling the    transaction order (same as Items 25 and 31).-   Item 38 is the electronic trading company completing the first half    of the LOCK transaction and updating the investor's account,    securities and cash position.-   Item 39 is the LOCK electronic order generation process for the    second half of the LOCK transaction which includes the LOCK    increment and order conversions (FIG. 4) in the new order.-   Item 40 is the second part of the LOCK order and communication    between the electronic trading company and the securities exchange.-   Item 41 is the trading transaction point of the securities exchange    where securities are offered and traded (either electronic or voice)    (same as Items 24, 30 and 36).-   Item 42 is the process of trading the security and filling the    transaction order (same as Items 25, 31 and 37).-   Item 43 is the electronic trading company completing the transaction    and updating the investor's account, securities and cash position    (same as Item 26 and 32).-   Item 44 is an alternative embodiment of the LOCK order adding an    option for the number of cycles the LOCK order should be processed.-   Item 45 is an alternative embodiment of the LOCK order adding a    option to increase or decrease the stock price for each LOCK cycle.-   Item 46 is an investor's computer with the LOCK management module    system installed on the computer.

DESCRIPTION Main Embodiment

The stock and equities trading Limit Order Coupled Link (LOCK) methodand invention centers on additional buy/sell profit informationcontained in the investor's equities order. It also encompasses thesoftware, designed to convert this order into two or more orders thatcan open and close out the investors position with preset profit goals.

The LOCK method and invention comprises (A) an investor who invests in asecurities market with an objective to make a profit; (B) a hostsecurities broker (such as E-Trade, Ameritrade, etc.) with a computernetwork, for handling their transaction. The host computer networkincludes a database server that provides an electronic security ordertemplate. With this template in place, the host computer network canstore and organize security transaction request so that when an investorinitiates a transaction, the network processes the request and sends itto a security exchange (such as New York Stock Exchange, NASDAQ, etc.);(C) individual computer workstations for each investor or broker. Eachcomputer workstation would include a video monitor, a means for theinvestor of broker to send user commands to the host computer network,and a means for the investor or broker to receive and display (on thevideo monitor) security order templates and instructions transmittedfrom the host computer network; (D) a communications networkelectronically linking the investor's computer workstation to the hostcomputer network; (E) a two-part securities exchange order (referred toas the LOCK order) that the investor initiates and that containsspecific instructions for the host computer network to transact thesecurity exchange. The LOCK order would include instructions andinformation for buying or selling a security, the name of the security,the quantity of that security, to buy the limit price or current marketprice at which to transact the security exchange and the increase ordecrease in security price to initiate part-two of the transaction(referred to as the LOCK profit); (F) a software module that allows theinvestor at the computer workstation to interact with the host computernetwork. With this software the investor can select security exchangeoptions and transmit them to the host computer network then receiveconfirmation that was underway. (G) an additional software module(referred to as the LOCK management module) as part of the securitiesbroker host computer network. This software would link the host computernetwork to the security exchange markets and track and monitor thestatus of the investor's LOCK order. At the appropriate market price,the software would initiate a two-part, sequenced securities exchangeorder to buy a stock at the investor's specified price, then add thespecified desired profit price and place a second order.

With LOCK the investor could enter as little as one extra data fieldwhen placing a stock order. This additional information would be theLOCK profit margin. By entering this number, the investor would tell theinvestment company or securities broker to execute a LOCK transaction(buy and sell linked limit order).

Currently the minimum information required for an electronic transitionis buy or sell 2, securities symbol 5, quantity 6, market price or limitprice 8, and the time the order is good for day order or good tillcanceled 4. A LOCK order adds one more data field. This field is theLOCK field of the change in security price such as 1¼ or 1.00representing $1.25 or $1.00 change in stock price. An example would be:buy, 100 shares of stock XYZ, at market price for a share, “good tocancel”, LOCK 1. Good to cancel term referrers to the order as beingplaced until filled or canceled by the investor. This would betranslated by the computer network as a buy order for 100 XYZ at marketper share and then immediately place an order to sell 100 shares of XYZstock at purchased price plus $1.00 a share, with an order that is “goodto cancel”. This allows the investor to place an order and be free toconduct other business. If the 100 shares of XYZ stock the investor hasprocured goes up $1.00 LOCK would automatically execute the sell orderensuring a profit of $100 minus the transaction costs. LOCK allowsinvestors to make predefined gains on securities place.

OPERATION Main Embodiment

The LOCK method and invention centers on additional buy/sell profitinformation contained in the investor's equities order. It alsoencompasses the software that converts an investor's order into two ormore orders that open and close out the investor's position with presetprofit goals.

FIG. 1 shows information typically required and found on electronictransaction equities order 1 today, including instructions from theinvestor to buy or sell 2, whether to form a long (buy) or short (sellshort) position 3, the time the order is valid either for the remainderof the market day then canceled (also referred by investors as “fill orkill”) or the leave the order valid for multiple days until filled orcanceled by the investor 4, the stock symbol 5, the quantity of stock 6,whether the order is a market order (to trade at the prevailing tradingprice) 7, or a Limit Order (to trade at a specific price or better) 8.

FIG. 2 is shows the addition of the LOCK information box 9, to the FIG.1 example order form. If an investor wished to execute a LOCK trade, theinvestor would simply add the movement value of the equity 10 to closeout the position. This simple addition of information LOCK value 10 isall that the investor would have to add to execute the LOCK process. Ifthe investor enters an order to buy a stock and enters a 1.00 in the boxthis would be interpreted by the LOCK process (FIG. 3) and module (FIG.5) to sell the equity at 1.00 more than the purchase price. Alternateembodiment of this number could be to have the investor specify theamount of profit desired such as $150.

FIG. 3 shows the logic execution and conversion of the LOCK inventionand process. FIG. 3's right side represents the investor's input requestthat is used to execute Part one of the LOCK process. The buy/sellinstruction 2 convert from part 1 from buy to part 2 to sell 11. Anexample is if the order states to buy 100 XYZ, part 1 will buy thenconvert to a sell order in part 2. The order's time to be valid box inpart 1 can be specified as day or good to canceled 4. If part 1 on theLOCK order is executed, this information will convert to a good tillcanceled order. An option for the investor is to see the status of hisorder and request modification to the LOCK order or cancel the secondhalf of the LOCK order if unexecuted. An example may be that theinvestor's LOCK order is executed and he now holds 100 shares of XYZ andis waiting for a LOCK price move of 2.00 before he sell. During thistime the investor queries the electronic investment company on thestatus of the LOCK order and sees that part one has been executed andnow wished to cancel the “sell” order in part 2 of the LOCK order. Theinvestor submits a cancellation request and, if received in time, theLOCK order could be canceled and the investor would only have part 1 ofthe LOCK order's results. Similarly, if the investor wished to cancelthe entire LOCK order before part 1 has been executed, the order wouldbe cancelled in a method similar to canceling traditional unexecutedorders.

The stock symbol 5, and stock quantity 6, remains the same in part 1 andpart 2. Alternate embodiment could change the quantity, such as sellinghalf in part 2 then cycling through part 2 again selling the second halfa an increased price. The price selection for part 1 involves either amarket order 7, which executes the trade at the prevailing market rateor a Limit Order 8, which specifies a price. For the investor to executea Limit Order normally he or she must check a box and enter the price atwhich to execute it or if market conditions permit, at a better price.The part 1 order executed price in combination with information in theLOCK box 9, and the LOCK price 10, will form the Limit Order executionprice for the part 2 of the LOCK transaction.

FIG. 4 shows the conventional electronic trading process requiring twoorders to open and close a position. The process begins with theinvestor 17 placing a buy or sell order 18 with an electronic tradingcompany or organization 20. The electronic trading company 20 generatesan electronic order 21 that is submitted 22 to a securities exchange 23.The order 21 is presented in the trading pit 24 and when a buyer/selleraccepts the order, the order is filled 25. Once the order has beenexecuted or filled 25, the electronic trading company is notified andthe investor's account is documented 26 and the investor 17 is informed.The investor 17 must now place another order 27 to close out his or herposition and make a profit. An example of this process would be if aninvestor 17 initiated the process to buy 100 shares of stock XYZ at$50.00 a share 18, received notification that the order was fullyexecuted 26 now the investor 17 must resubmit an order 27 to sell 100shares of XYZ at $52.00 to make a profit. The order 27 is submitted tothe electronic trading company where a new order is generated 28, ordersubmitted 29, presented in the trading pit 30, filled, 31 documented andthe account is updated and the investor notified 32. Current stateof-the-art methods require the investor or broker 17 to be involved inboth transactions.

FIG. 5 shows the main embodiment of the LOCK method, process and orderflow sequence for opening and closing a LOCK order. The method beginswith the investor 17 submitting a LOCK order 19, which containssufficient information as described in FIG. 3. The LOCK order 19 issubmitted to the electronic trading company 20 where the order isidentified as a LOCK order and enters the LOCK management module process12. The LOCK management module 12 comprises the software interfaces thatreceive the LOCK order 19 document and generate a tracking record 33,record the LOCK increment 35, monitor the submission of the first partof the LOCK order submission 34, as the order 34 enters the securitiesexchange 23 trading pit 36, and the order is filled 37, then record thefirst order being filled 38, generate the second part of the LOCK order39, and submit the second part of the LOCK order 40. The second part ofthe LOCK order 40 is resubmitted to the trading pit 41 and once thesecond order is filled 42, the electronic trading company 20, recordsthe account balance 43 and notifies the investor 17 that the LOCKtransaction has been completed.

The LOCK management module 12 will also provide the investor 17 withstatus when requested. For example, if the investor 17 wishes to checkon the status of the LOCK order 19, he or she could electronicallycontact the electronic trading company 20 and receive an update on theLOCK order 19—for example, where the order was in the process, such aswhether the first part of the LOCK 19 order was filled 37, second partof order submitted 40 and in whether it was the trading pit 41 waitingto be filled.

DESCRIPTION AND OPERATION Alternative Embodiments

Alternative embodiments include inserting the option to automaticallyre-cycle through the process again and an additional option to increaseor decrease the buy/sell prices. FIG. 6 and FIG. 7 shows alternativeembodiment of the LOCK method by adding a number of cycles and incrementoptions to the methodology. FIG. 6 shows the additional informationrequired to cycle through the process. FIG. 7 shows the methodology forreentering the LOCK management module 12. The addition of “Number ofCycles” 44 would allow the investor to automatically reenter the LOCKprocess again in hopes of making more profit. An example of specifyingtwo cycles would mean to buy 100 shares of XYZ (with a LOCK price of $1)at $50 a share, sell at $51 a share, buy back at $50 and sell again at$51. This investment process would allow the individual investor to takeadvantage of daily small stock fluctuations.

Another option would be to increase the price increment for each cycle45. Investors would use this process to take advantage of a stock pricethat is moving up. An example is specifying buy 100 XYZ at $50.00 with aLOCK price of $1, number of cycles of 3 and an increment of $0.50. Thiswould translate to buy 100 shares of XYZ at $50.00, sell at $51.00, buyback at $51.50, sell at $52.50, buy back at $52.00, and sell at $53.00.

Another embodiment would be to locate the LOCK management module 12 onthe investor's own computer.

FIG. 8 is an alternative embodiment that would locate the LOCKmanagement software module 12 on an investor's computer 46. This methodand approach is similar to the primary methodology requiring LOCKinformation to automatically generating multiple sequenced orders andexecuting the number of cycles and increments selected by the investordiscussed below.

The LOCK process could include an option allowing an investor to cancela LOCK order anytime during the process. For example an investor coulddecide to hold on to a stock purchased in part 1 of the LOCK order thencancel the sell side (part 2) of the LOCK order. The stock symbol 5, andstock quantity 6, remains the same in part 1 and part 2. Alternateembodiment could change the quantity, such as selling half in part 2then cycling through part 2 again, selling the second half at anincreased price.

An alternative embodiment of the LOCK invention method is to usepercents as the LOCK, rather than stock prices. For example an investorcould enter a percent, such as 2%, rather than 1.5 points of stockprice. Suppose the stock is trading for $40.00 a share. The investorcould enter 1.5 meaning a move of $1.50 up would constitute a sell limitorder or by using percents, the investor could enter 2%, meaning a moveof $0.80 cents up would initiate a sell limit order.

Additional percent alternatives in defining the LOCK with respect to thetrade price could be offered to the investor to discount the trade orcommission costs. An example would be if a stock is selling for $100.00a share and the investor wishes a 5% gain, and the cost of a limit ordertransaction is $10.00 then the trade in and out cost is $20.00 so theLOCK could be interpreted as trade at a 5% gain after charges andcommission. The trade that completes the LOCK would be $107.00 a sharebased on 100 shares and a LOCK of 5% profit. Percentage LOCKs offer theinvestor a simpler conversion for setting investment goals.

CONCLUSION, RAMIFICATIONS, AND SCOPE

The LOCK invention and methodology will allow investors to definespecific investment strategies and execute these strategies with minimalinvolvement. This invention will further allow investors to takeadvantage of small and repetitive stock price movement that, over timecould translate to significant profits. The LOCK management module canreside at an online investment company or on investors' computers. Thisinvention will significantly increase the volume of trades for onlineinvestment companies. This strategy moves away from traditionalby-and-hold strategies to one of attempting to mass small but consistentgains. LOCK is especially advantageous to the average investor who doesnot have much time to watch the market's constant motion.

1. A method of electronically trading securities comprising: (a)providing a user or investor who invests in a securities market, (b)providing a host securities broker or electronic securities exchanger,(c) providing a computer workstation at places at locations associatedwith each user, the computer workstation including a video monitor,means to send user commands to the host computer network, and means toreceive and display on the video monitor security order templates andinstructions retrieved and transmitted from the host computer network,(d) providing a communications network electronically linking thecomputer workstations to the computer network, (e) providing asecurities exchange order initiated by a user containing but not limitedto, the instructions to buy or sell a securities, the name of thesecurity, the quantity of securities, the limit price or current marketprice at which the securities exchange should be transacted, and thechange in securities price for the follow-on transaction, (f) wherebysaid host securities broker or electronic securities exchange will: i.initiate transaction to buy or sell a security and, ii. upon transactionconfirmation, reenter the reverse order for the security at the saidchange in securities price specified by the said initial securitiesexchange order, (g) whereby said investor or broker need not reentersaid electronic security exchange order.
 2. The method of electronicallytrading securities of claim 1 whereby the said securities exchange orderinitiated by said investor or broker contains instructions to iteratethrough the buy-sell process more than one time.
 3. The method ofelectronically trading securities of claim 2 whereby each iterationchanges the buy-sell order by an incremental amount.
 4. The method ofelectronically trading securities of claim 1 whereby the said stockquantity and said price can vary in said iteration.
 5. A machine forautomatically buying and selling securities in a logical sequence oftransactions comprising: (a) a user or investor who invests in asecurities market, (b) a host securities broker computer network,including a database server that electronically provides a securityorder template such that investors can use to electronically enteredinto the host computer network which stores and organizes the securitytransaction request and in response to inputs transmits said securityorder request to a security exchange for transaction, (c) a computerworkstation at places at locations associated with each user, thecomputer workstation including a video monitor, means to send usercommands to the host computer network, and means to receive and displayon the video monitor security order templates and instructions retrievedand transmitted from the host computer network, (d) a communicationsnetwork electronically linking the computer workstations to the hostcomputer network, (e) a software module with a set of user applicationmodules which cause the computer workstation and host computer networkto generate on the video monitors a series of command options selectableby the user to generate the user commands, whereby the selected portionsof said security exchange order are stored on the host computer networkare located, organized, and transmitted over the communications networkto a workstation in response to one or more particular user commands andare displayed on the video monitors. (f) additional software as part ofthe securities broker host network linked to the security exchangemarkets that develops two sequenced buy-sell order from said order,tracks and monitors the status of each of the two-part security exchangeorders and will initiate the second order after the first order has beencompleted. (g) a securities exchange order initiated by said user thatcontains specific instructions to said host securities broker computernetwork to transact the security exchange with said transaction ordercontaining instructions and information to buy or sell a securities, thename of the security, the quantity of securities, the limit price orcurrent market price at which the securities exchange should betransacted and the increment for the next transaction, i. whereby saidsoftware will direct said host securities exchange network to transactsaid security at said price, said quantity and when completed, ii. saidsoftware module will add or subtract said increment to the nexttransaction order and complete the cycle with a profit.
 6. The machinefor automatically buying and selling securities of claim 5 to includesoftware to allow the user to specify the number of repeat said buy-sellcycles.
 7. The user specified number of repeat buy-sell cycles of claim6 to include software to allow for incrementally varying the buy-sellamounts during each said repeat cycle.
 8. The machine for automaticallybuying and selling securities of claim 5 to include software to allowthe user to specify changes in quantity of stock bought or sold infollowing transactions.
 9. A method to enter a single transaction orderwhich will execute sequenced transactions to buy and sell a securitythrough an electronic security exchange transaction order consisting thesteps of: (a) electronically entering a security exchange order byspecifying the name of the security, the quantity, the limit price orcurrent market price at which the securities exchange should betransacted, and the increase or decrease in securities price to initiatethe next security transaction; (b) processing said security exchangeorder between a computer workstation and host computer network of asecurity exchange broker for recording and processing, (c) passing theorder to the security exchange for transaction, (d) transacting saidorder with said security exchange, (e) receiving confirmation oftransaction, (f) reconstruct new security transaction order by changinga buy order to a sell order or a sell order to a buy order and adjustingthe transaction price by the said increase or decrease increment, (g)resubmitting said new security transaction order to the said securityexchange, (h) receiving confirmation of transaction (i) updating theinvestor's or brokers account.
 10. The method to enter a singletransaction order which will execute multiple sequenced transactions ofclaim 9 with the additional buy-sell iterations.
 11. The method ofadditional buy-sell iterations of claim 10 whereby in each iteration thesecurities price is automatically and incrementally modified.
 12. Themethod to enter a single transaction order that will execute sequencedtransactions whereby the quantity of securities will vary.